Midori's retirement plan assumes she will live until age 90, earn an annual 7.5% rate of return on her investments and receive a before-tax income of $42,000 (paid at the beginning of the year) during her retirement years if she draws on her capital. She had originally planned to retire at 65 years of age. However, when she reached that age, she was in excellent health and enjoying her work. Therefore, she continued working until age 70. When Midori finally retired at age 70.

How much less did she need in savings to meet her retirement objectives?

Answer rating: 100% (QA)

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